Corporate Foresight and its Impact on Firm Performance: A Longitudinal Analysis

TY - JOUR

T1 - Corporate Foresight and its Impact on Firm Performance: A Longitudinal Analysis

AU - Rohrbeck, René

AU - Kum, Menes Etingue

PY - 2018

Y1 - 2018

N2 - Corporate foresight is applied with the expectation that it will help firms to break away from path dependency, help decision makers to define superior courses of action, and ultimately enable superior firm performance. To empirically test this assumption, we developed a model that judges a firm’s future preparedness (FP) by assessing the need for corporate foresight (CF) and comparing it to the maturity of its CF practices. We apply a longitudinal research design in which we measure future preparedness in 2008 and its impact on firm performance in 2015. The results indicated future preparedness to be a powerful predictor for becoming an outperformer in the industry, for attaining superior profitability, and for gaining superior market capitalization growth. In the article, we also calculate the average bonus/discount that can be expected by sufficiently/insufficiently future-prepared firms.

AB - Corporate foresight is applied with the expectation that it will help firms to break away from path dependency, help decision makers to define superior courses of action, and ultimately enable superior firm performance. To empirically test this assumption, we developed a model that judges a firm’s future preparedness (FP) by assessing the need for corporate foresight (CF) and comparing it to the maturity of its CF practices. We apply a longitudinal research design in which we measure future preparedness in 2008 and its impact on firm performance in 2015. The results indicated future preparedness to be a powerful predictor for becoming an outperformer in the industry, for attaining superior profitability, and for gaining superior market capitalization growth. In the article, we also calculate the average bonus/discount that can be expected by sufficiently/insufficiently future-prepared firms.

KW - corporate foresight

KW - future preparedness

KW - firm performance

KW - behavioural theory of the firm

UR - http://www.scopus.com/inward/record.url?scp=85039794284&partnerID=8YFLogxK

U2 - 10.1016/j.techfore.2017.12.013

DO - 10.1016/j.techfore.2017.12.013

M3 - Journal article

SN - 0040-1625

VL - 129

SP - 105

EP - 116

JO - Technological Forecasting and Social Change

JF - Technological Forecasting and Social Change

IS - 4

ER -